ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 21.07.2025
CESTAT Mumbai Allows Conversion of 1767 Shipping Bills Beyond 3-Year Limit
Background
ADF Foods Ltd., a leading exporter of pickles, namkeens, and chutneys, approached the Commissioner of Customs (NS-II), Nhava Sheva seeking conversion of 2463 shipping bills from the Drawback Scheme to the Duty-Free Import Authorization (DFIA) Scheme under Section 149 of the Customs Act, 1962.
While the Commissioner allowed conversion for 696 shipping bills, conversion for the remaining 1767 shipping bills was rejected on the ground of being beyond 3 years from the date of exportβby invoking Article 137 of the Limitation Act.
Key Issues
- Whether a time limit of 3 years can be imposed on conversion under Section 149 of the Customs Act?
- Whether conversion is impermissible if benefit of the original export scheme (Drawback) has already been availed?
- Whether procedural barriers in circulars can override statutory provisions?
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Mumbai
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